Which of the following is true at the output level where diminishing marginal product first set in?
a. Both marginal product and marginal cost are at a minimum
b. Both marginal product and marginal cost are at a maximum.
c. Marginal product is at a maximum and marginal cost is at a minimum.
d. Marginal product is at a minimum and marginal cost is at a maximum.
c
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Refer to the Article Summary. In 2015, the European Union initiated the BRRD program, where the burden of bailing out troubled banks is being placed on bank creditors, shareholders, and possibly depositors
If this program were to confiscate funds from bank deposits to assist troubled banks, the possibility of a bank run, a situation in which ________, would likely increase. A) many depositors simultaneously decide to withdraw money from a bank. B) a majority of the bank's loans go into default all at once. C) a majority of the shareholders in a bank decide to sell off all their shares of stock. D) a bank stops paying interest on all of its interest-bearing accounts.
According to the demand pull theory, which is responsible for inflation?
a. producers raise prices to meet existing demand b. the economy is in a wage price spiral c. too much money is in circulation d. Demand for goods and services exceeds existing supply